While Europe is being dragged into the Greek tragedy, the former Soviet Union
is facing completely different challenges. In this article we compare this region
with Africa and conclude that there are some striking resemblances.

Hungary struggled through the financial and economic crisis in 2009. The economy shrunk by 7% and there was little room for fiscal stimulus as Hungary had to adhere to the conditions of the IMF attached to the aid package.

Similar to other Eastern European countries, the financial crisis hit Bulgaria mainly through a drop in export demand, tighter credit facilities and general risk aversion against the region. The economy shrunk by 5% in 2009.

Ukraine’s country risk profile has improved somewhat recently, but overall risks remain high. A new government, controlled by the party of newly elected president Yanukovych, has taken power, which has ended the political paralysis and infighting of the preceding years.